S 1767 New Jersey Senate · 2026-2027 Regular Session

Eliminates use of census-based funding of special education aid in school funding law.

This bill eliminates the use of census data in calculating state funding for special education aid to New Jersey school districts. It amends existing school finance laws (P.L.1996, c.138 and P.L.2007, c.260) by removing references to census-based calculations and "State average classification rate" from the special education funding formulas. School districts receiving special education aid will no longer have their funding amounts determined using census data, shifting the calculation method to other established formulas. The change directly affects all New Jersey public school districts that receive state special education funding under current law.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 13, 2026 Last action May 11, 2026
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What changed between versions

Technical Review Of Prefiled Bill Introduced · 5 edits · Jan 13, 2026
MODERATE
The bill significantly expands the budget reduction process from applying only to districts with a board of school estimate to applying to all districts whose voters reject a budget, routing rejected tax levies through municipal governing bodies instead. It also removes provisions allowing districts without boards of school estimate to submit separate proposals for additional funds at special elections, and adds a requirement that adequacy-budget-exceedance statements appear on sample ballots.
Scope change
The budget reduction and appeal process was expanded from applying only to districts with a board of school estimate to applying to all districts where voters reject a budget, with municipal governing bodies taking on the role previously held exclusively by boards of school estimate. Simultaneously, the separate-proposal mechanism for additional funds at special elections was eliminated.
SCOPE

The budget reduction process in subsection e now applies to ALL districts where voters reject a general fund tax levy, not just districts with a board of school estimate. Rejected levies are submitted to the governing body of each municipality in the district for determination of the amount to be expended.

Removed provisions allowing districts without a board of school estimate to submit separate proposals for additional funds at special elections, and removed provisions allowing districts with November elections to submit separate proposals for additional funds for the current or subsequent budget year.

REQUIREMENT

The commissioner must now consider 'the history of voter approval or rejection of district budgets' as an additional factor when reviewing appeals of budget reductions, alongside enrollment changes, local levy impact, and contractual obligations.

Added requirement that when a proposed budget exceeds the adequacy budget, the explanatory statement must be printed on the sample ballot required by C.19:60-10, in addition to being published in the legal notice and posted at the public hearing.

TECHNICAL

Cross-reference corrected from P.L.2025, c.234, s.1 to P.L.2013, c.280, s.1, and a new STATEMENT section was added at the end describing the bill's purpose of eliminating the census-based special education aid methodology in favor of actual enrollment-based calculation.

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Full legislative history

Actions timeline

Total actions
3
Key actions
0
Committee
1
May 11, 2026
Committee
Referred to Senate Budget and Appropriations Committee
upper
Jan 13, 2026
Introduced
Introduced in the Senate, Referred to Senate Education Committee
upper
2 primary · 5 co-sponsors

Sponsors